Economic and Financial Review
Publisher
Central Bank of Nigeria.
Keywords
Agriculture, Agricultural Finance, Food Security, Finance, Sustainable, Nigeria
Abstract
Several studies have found a positive correlation between agricultural financing and the performance of the agricultural sector. But fewer efforts have been directed at sieving out the agricultural output that is exclusively associated with the extent of funding. This study aimed to ascertain the actual portion of total agricultural output that could be attributed to agricultural financing in Nigeria. The vector error correction methodology was applied following the nature of data properties. The results showed a positive effect of finance on agricultural output. However, variance decomposition revealed the poor state of agricultural financing with a disproportionate dependence of the sector on natural weather conditions. The case is therefore made for increased funding of agriculture for optimal performance.
Publication Title
CBN Economic and Financial Review
Issue
2
Volume
51
Recommended Citation
Mbutor, O. M., Ochu, R. E. & Okafor, I. I. (2013). The Contribution of Finance to Agricultural Production in Nigeria. CBN Economic and Financial Review. 51(2), 1-20.